The updated legislation was introduced to Parliament on March 27. The proposed changes include:

• Requiring importers and certain processors of raw logs to notify the Secretary of the proposed import of a regulated timber product or processing of domestically grown raw logs;
• Clarifying that additional monitoring powers and additional investigation powers include taking, testing, and analysing samples of regulated timber products;
• Enabling the Secretary to direct an audit of an importer or processors’ due diligence system and compliance with that system; and
• Making available injunctions and enforceable undertakings.

There have been several key changes to the scope of restricted timber products since the Act was introduced in 2012.

Following Russia’s invasion of Ukraine, the Australian government imposed several tariffs on Russia and Belarus, including a 35 per cent tariff on all imported timber products.

All timber originating in Russia and Belarus was also deemed “conflict timber”.

This posed a huge adjustment for Australia’s construction market, with a significant amount of imports comprising of timber originating in Russia.

Of the $6 billion worth of wood products imported into Australia over the past decade, up to 60 per cent of imported laminated veneer lumber was imported from Russia.

Meanwhile, EU and UK governments have imposed total import bans on Russian timber products.

Traders have been seeking loopholes to get around restrictions and smuggle the deemed “conflict timber” into these markets under false pretences.

Many smuggle timber through other markets, including China, Kazakhstan or Kyrgyzstan, and import into Australia using falsified documents and false country-of-origin labels.

These dishonest practices, however, put Australian timber importers at risk, who could be unknowingly importing illegal goods into the country, for which they could face major fines and penalties.

Approximately 10 per cent of Australia’s annual timber imports are either illegally logged or illegally brought into the country.

Murray Watt, Minister for Agriculture, Fisheries and Forestry, said the Bill’s proposed amendment would modernise and strengthen current laws if it should pass through Parliament.

“Australia’s illegal logging laws support a sustainable forestry industry and reduce the risk of it being undercut by illegal products,” Minister Watt said in a media release.

“Reforms will enable use of new innovations including cutting-edge timber identification technologies, to strengthen our ability to identify and act against those who jeopardise Australia’s legal and sustainable timber trade.”

The Australian Forest Products Association (AFPA) also welcomed the proposed changes.

“Illegal timber not only undermines the environmental sustainability of the forest products industry, it also undermines our domestic biosecurity protections creating a heightened risk of potentially devastating pests and diseases that can devastate local industry,” said CEO Diana Hallam.

“Onerous red tape”

While the amendment has garnered some support, some timber advocates are concerned that the amendment is too far-reaching and holds dire consequences for timber importers.

In an open letter to Minister Watt, the Australian Timber Importers Federation (ATIF) expressed concerns that the bill before parliament was introducing some “deadly elements”.

It expressed that Australia’s timber supply could not support its growing population and required construction for housing.

Census data shows that Australia’s population has doubled since 1971, while demand for softwood timber imports exponentially grew by 58.8 per cent from the previous year in 2023, causing prices to skyrocket.

“Australia has not sufficiently invested in the plantation timber resources that are needed to meet the need for new housing – particularly in structural timber applications,” the letter read.

“Australia must import timber on the global market to meet its future housing needs and does so in competition in the international market.”

ATIF argues that the former government “has overreached” in the drafted amendments, and further restrictions would further contribute to already-surging timber prices.

“If suppliers in these countries have unduly onerous questions to answer and which are not, in many cases, proportionate to the risk that the timber proposed to be imported may be illegally logged … the supplier will increase the price to Australian companies or sell it elsewhere. A further contraction of supply will further increase the price,” stated ATIF.

“In addition to this, unnecessary and onerous red tape, increased staff numbers to deal with due diligence requirements, fines and enforcement have a direct impact on the price of timber sold in Australia as these costs need to be passed on.”

The Rural and Regional Affairs and Transport Legislation Committee is currently assessing submissions on the Bill from the public.

Read more about illegal logging.

More resources for timber importers.